Many Americans now work as freelancers or have become self-employed within the last couple years. Quickbooks reported that nearly 32 to 44 million Americans were already self-employed in 2019. Freelancing or self-employment is a viable option, but you may have some issues finding affordable health insurance.
The Challenges Of Getting Health Coverage While You’re Self-Employed
Freelancing or being self-employed can have some interesting hurdles. Both your schedule and income change drastically. You may also find yourself wondering how on earth you’ll find affordable health insurance when you’re self-employed.
Health insurance is generally much higher for self-employed individuals. Many freelancers and self-employed individuals will even go so far as to work at a place such as Starbucks to receive affordable health benefits. There are a few other ways that freelancers and self-employed individuals can receive affordable health benefits.
Also Read: An Overview of Starbucks’ Health Insurance
What The Self Employed Should Do When They Look For Health Insurance
Employers normally pay about 80% of the benefit costs. This is why health insurance is normally far more expensive for the self-employed or freelancer. Keep this in mind as you’re shopping around.
As you’re shopping, remember that you cannot be discriminated against for pre-existing conditions under the Affordable Care Act (ACA). However, the following can affect your premium rates:
- Age
- Location
- Tobacco use
- Number of dependants
Be sure to double-check your state’s health insurance laws. Some states have different specifications on health insurance rates, and which dependents can be covered in your chosen plan.
Also Read: How To Prepare For Open Enrollment 2021
6 Places To Get Health Insurance If You’re Self-Employed
As open enrollment for 2021 quickly approaches, take a look at some of these health insurance options for the self-employed or freelance workers.
COBRA
COBRA (Consolidated Omnibus Budget Reconciliation Act) offers health insurance coverage for those with extenuating circumstances. This coverage allows individuals to convert their existing group plan into an individual one. This means you can apply for COBRA benefits if you’ve:
- Lost your previous coverage.
- Had a change in household dynamic, such as a death in the family or a divorce.
- Changed your residence.
- Had a change in income.
- Left an old job or were let go to start your own business.
This is only a stopgap, not a permanent solution. The COBRA coverage normally caps out at between 18 to 36 months. Individuals also only have about 60 days to decide to take the COBRA coverage.
Since the plan is converted to an individual plan, it will be more expensive for you to use COBRA. But this coverage can cut some of the out-of-pocket costs you may have without coverage.
The Affordable Care Act (ACA)
The Affordable Care Act (ACA) allows people to find insurance through the healthcare marketplace as an individual or a small business. Enrollment for these plans happen during the open enrollment period in November and will be in effect in the following year.
This means if you sign up for an ACA plan during November, 2021, your benefits will begin January, 2022. You can still apply for benefits under special enrollment, but there are some requirements for this.
Group Insurance
Premiums are less expensive if you’re filing as a group rather than an individual. You may be able to find other group insurance in the other organizations you’re a part of. This can include some of the following organizations:
- AARP Health
- Affiliated Workers Association (AWA)
- Association for Computing Machinery
- Costco Health Insurance Marketplace
Getting A Side-Gig
It’ll be a little difficult needing to work 2 jobs in order to get affordable health insurance, but lots of employers offer part-timers full medical benefits. Places like Starbucks and Costco offer their employees great benefits even if you only work part of the week.
Along with affordable health insurance, you can also get some other pretty sweet benefits that being self-employed might not always offer. Check out our full review on working part-time to get benefits here.
Your Partner’s Health Insurance
Your partner may receive some benefits from their work. See if you qualify to be added under their health insurance. Some plans will even consider domestic partnerships as dependents.
If your partner doesn’t have health insurance, but is looking for work, see if they can find work with an employer that will offer affordable health insurance for part-time employees. That way, you can still remain self-employed and both you and your partner get benefits.
Freelancer’s Union
Becoming a part of a larger association helps cut the costs of health insurance premiums. You may have a union somewhere in your area you can join. You can also check out the official Freelancer’s Union for great health insurance options with specialty plans.
If you’re working as a freelancing creative, you can also apply for group insurance through the American Writer’s Guild, or the American Institute of Graphic Arts.
Self-Employed Individuals and Private Health Insurance
When you look for health insurance, don’t be afraid to shop around and compare quotes similarly to when you look for car insurance. If you want help comparing quotes from different providers, you can always call Quote Purple to get all the most comparable health insurance quotes.
First, be sure to check out the marketplace coverage online. See if you qualify for discounted health insurance with medicaid, and how everything will affect your taxes. Your state may also have certain subsidized programs for low-income individuals.
Also Read: How To Get Help Paying For Your Hospital Bill
Consider how you want to pay for your health insurance. Although you may find a plan with a cheaper monthly premium, you may have higher deductibles, co-pays, and out-of-pocket costs. If you just need your health insurance for emergencies and regular checkups, this might be ideal for you. However, you should still consider the costs of a first, second, and even third emergency.
If you want to compare premium costs of some of these plans to private plans, you can always give Quote Purple a call. We work with premier partners who can offer competitive health insurance rates.